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Practice Exercise 22-1A on page 1,022.

Practice Exercise 22-2A on page 1,022.

Practice Exercise 22-3A on page 1,022.

Practice Exercise 22-4A on page 1,023.

Some of the exercises or problems may contain multiple questions, so be sure to answer every part

PE 22-1A

Flexible budgeting

At the beginning of the period, the Fabricating Department budgeted direct labor of

$22,500 and equipment depreciation of $7,000 for 900 hours of production. The department

actually completed 750 hours of production. Determine the budget for the department,

assuming that it uses flexible budgeting.

PE 22-2A

Production budget

obj. 4

EE 22-2 p. 1007

Soft Glow Candle Co. projected sales of 78,000 candles for 2010. The estimated January

1, 2010, inventory is 3,600 units, and the desired December 31, 2010, inventory is 4,500

units. What is the budgeted production (in units) for 2010?

PE 22-3A Direct materials

purchases budget

Soft Glow Candle Co. budgeted production of 78,900 candles in 2010. Wax is required

to produce a candle. Assume 8 ounces (one half of a pound) of wax is required for each

candle. The estimated January 1, 2010, wax inventory is 2,000 pounds. The desired

December 31, 2010, wax inventory is 2,400 pounds. If candle wax costs $3.20 per pound,

determine the direct materials purchases budget for 2010.

PE 22-4A Direct materials

purchases budget

Soft Glow Candle Co. budgeted production of 78,900 candles in 2010. Each candle

requires molding. Assume that 15 minutes are required to mold each candle. If molding

labor costs $16.00 per hour, determine the direct labor cost budget for 2010.

Practice Exercise 23-1A on page 1,069.

Practice Exercise 23-2A on page 1,069.

Practice Exercise 23-3A on page 1,069.

Exercise 23-2 on page 1,071.

Exercise 23-21 on page 1,075.

PE 23-1A

Direct materials

variances

Chapter 23 Performance Evaluation Using Variances from Standard Costs 1069

Norris Company produces a product that requires six standard pounds per unit. The

standard price is $1.25 per pound. If 500 units required 2,900 pounds, which were purchased

at $1.30 per pound, what is the direct materials (a) price variance, (b) quantity

variance, and (c) cost variance?

PE 23-2A

Direct labor variances

Norris Company produces a product that requires 3.5 standard hours per unit at a standard

hourly rate of $12 per hour. If 500 units required 1,500 hours at an hourly rate of

$11.50 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost

variance?

PE 23-3A

Factory overhead

controllable variance

Norris Company produced 500 units of product that required 3.5 standard hours per

unit. The standard variable overhead cost per unit is $0.70 per hour. The actual variable

factory overhead was $1,200. Determine the variable factory overhead controllable

variance.

EX 23-2

Standard product

cost

Hickory Furniture Company manufactures unfinished oak furniture. Hickory uses a

standard cost system. The direct labor, direct materials, and factory overhead standards

for an unfinished dining room table are as follows:

Direct labor: standard rate $18.00 per hr.

standard time per unit 2.5 hrs.

Direct materials (oak): standard price $9.50 per bd. ft.

standard quantity 18 bd. ft.

Variable factory overhead: standard rate $2.80 per direct labor hr.

Fixed factory overhead: standard rate $1.20 per direct labor hr.

Determine the standard cost per dining room table.

EX 23-21

Recording standards

in accounts

The Assembly Department produced 2,000 units of product during June. Each unit

required 1.5 standard direct labor hours. There were 3,200 actual hours used in the

Assembly Department during June at an actual rate of $14.00 per hour. The standard

direct labor rate is $15 per hour. Assuming direct labor for a month is paid on the fifth

day of the following month, journalize the direct labor in the Assembly Department on

June 30.